Brent crude oil futures fell toward $108 per barrel on Wednesday, extending losses for a second session as markets reacted to easing immediate escalation risks in the Strait of Hormuz and signs of limited diplomatic flexibility between the United States and Iran.
Brent was trading at about $107.8–$108.2 per barrel, down roughly 1.5% to 2.3% on the day, after a recent surge that had pushed prices above $114 per barrel earlier in the week on supply disruption fears.
The decline followed remarks by U.S. Secretary of State Marco Rubio, who said “Operation Epic Fury” had concluded, with its stated objectives achieved. President Donald Trump also indicated that U.S. efforts to assist vessels exiting the Strait of Hormuz would be temporarily paused to assess the possibility of a negotiated settlement with Iran.
Despite the pullback, the broader geopolitical risk premium remains intact. The United States continues to enforce a blockade on vessels travelling to and from Iranian ports, limiting expectations of a full de-escalation in the near term.
Market participants said oil prices remain supported by uncertainty around the Strait of Hormuz, through which roughly 20% of global seaborne oil trade flows, keeping volatility elevated.
Washington is now shifting focus toward reopening the waterway, amid growing pressure from allies and domestic opposition to prolonged military engagement. However, Iran has maintained that any negotiations depend on the lifting of the U.S. blockade, leaving talks at an impasse.
Analysts said the market is currently pricing a partial de-escalation scenario, rather than a full resolution, with crude likely to remain sensitive to any developments in U.S.–Iran relations.
